4. The coverage and granularity of reporting on climate finance received by
non-Annex I Parties is improving. The proportion of BURs that include information on
finance received rose from approximately 60 per cent in 2014 to over 97 per cent in 2021. A
total of 70 Parties have provided quantitative information on climate finance received at the
project or activity level in tabular format. More Parties are reporting details on financial
instruments and implementing entities and on whether finance received is for mitigation or
adaptation. Information that is reported the least includes that related to the use, impacts and
results of climate finance. Limited capacities and resources to track climate finance received
can pose challenges for non-Annex I Parties in reporting this information, and a lack of
reporting on the year an activity received climate finance can make it difficult to compile and
aggregate data.
5. Systems to track domestic public climate finance are growing in both developed
and developing countries. Twenty-four jurisdictions have established tracking systems for
national budgets, with a further 24 countries having methodologies for tracking climate-
relevant budgets in development. Building on previous work carried out as part of the climate
public expenditure and institutional reviews of the United Nations Development Programme,
many countries are developing guidance on green budgeting frameworks that include
climate-relevant activities. Domestic public expenditures on climate change in 2019–2020
amounted to an estimated total of USD 134.2 billion (see chap. II.B below).
6. Renewable energy, CCU/S, electrified transport, energy efficiency of buildings,
and water management and supply are the most common mitigation activities listed
across international, regional and national taxonomies or classifications. An analysis of
12 classification lists or taxonomies related to climate change mitigation activities, including
those of MDBs and of regional and national jurisdictions, revealed that mitigation activities
that appear most commonly (in more than 75 per cent of lists) are renewable energy,
electrified transport, energy efficiency of buildings, water management and supply, and
abatement technologies (e.g. carbon dioxide capture and use or storage). Different eligibility
criteria are in use for common activities relating to agriculture, waste, transport infrastructure
and power generation (the latter including geothermal power, hydropower, bioenergy and
efficiency improvements). Less common activities (in 25–75 per cent of lists) include gas-
fired power generation, waste-to-energy processes, sustainable logging, and information and
communication technology infrastructure. Of the uncommon activities (less than 25 per cent
of lists), notable are nuclear power generation, aviation and mining. Of the 12 taxonomies of
countries and institutions reviewed, 10 make use of exclusion lists across mitigation sectors.
For adaptation, most taxonomies refer to process-based screening methods rather than an
activity list owing to adaptation activities being specific to a given local environment or
context. The evaluation baseline for adaptation screening processes is typically based on
environmental and climate risk and vulnerability assessments or national, regional or global
resilience and biodiversity standards and codes. In addition, 7 of the 12 analysed taxonomies
apply the ‘do no significant harm’ principle (to other environmental objectives) when
assessing the eligibility of activities.
7. Climate finance providers are advancing more indicators and metrics to measure
what climate finance is achieving on the ground. Multilateral climate funds (including the
operating entities of the Financial Mechanism), multilateral institutions and national
development finance institutions are in the process of developing or have already developed
frameworks for measuring outputs, outcomes and impacts of climate finance interventions,
with the granularity of indicators and metrics increasing. Multilateral climate funds, in their
results management frameworks, capture information on 141 indicators, 48 of which are core
indicators, and most multilateral institutions, as well as bilateral contributors, use a similar
set of mitigation and adaptation indicators. Common indicators identified for mitigation are
greenhouse gas emissions reduced (in t CO
2
eq) and sector-specific metrics for the energy,
transport and land-use sectors. For adaptation, common indicators in use are the number of